There are three types of net leases where the tenant pays the monthly base rent plus ‘extras’:
- Single Net Lease – property tax is paid for by the tenant
- Double Net Lease – property tax and building insurance are paid by the tenant
- Triple Net Lease – tenant pays for property tax, building insurance, building maintenance and repairs
Of these three types of net property leases, NNN is the most advantageous to the real estate investor looking for passive, long-term real estate investment with no management responsibilities.